TransMedics Group (TMDX, Financial) experienced a sharp decline in its stock price today, falling over 15% following the release of a critical report by Scorpion Capital. The report accuses the company of engaging in unethical practices, including "mafia-style" extortion, racketeering, and organ trafficking schemes, all under the guise of a medical device company. Scorpion Capital has set a target price of $0 for TransMedics, indicating a belief that the company's shares are worthless.
The report further alleges that TransMedics has been involved in kickbacks, billing fraud, unreported device failures, and widespread off-label misuse of its Organ Care System (OCS).
In response to these allegations, Scorpion Capital announced plans to file a Citizen Petition with the FDA, requesting the suspension of Premarket Approval (PMA) for TransMedics' OCS. They also intend to send a public letter to members of Congress probing abuses in the U.S. organ transplant system.
